The consideration for the acquisition of the northwest Queensland project is 10 million shares at $0.05 each. The acquisition agreement is conditional upon shareholder approval which will take place at GBM's Annual General Meeting in late November.
The move to acquire Swift Resources' interest in the project follows Swift's decision to discontinue its IPO due to the poor prevailing capital market conditions.
GBM believes that acquiring control of 100% of the Phosphate Rights provides the best options for their development, or potentially revisiting the IPO process when market conditions improve.
The Bungalien Prosphate Project licences are contained within the phosphate-rich Beetle Creek Formation at shallow depth.
The project is located 50 kilometres north of Australia's only operating phosphate mine, Phosphate Hill, which hosts a resource of 1.1 billion tonnes at 17% phosphate.
Phosphate values within the project are up to 26% phosphate, and rail and road links cross the licences.
This provides a strong road to development of the project for GBM, leveraging strong growth in phosphate demand and funding for the Bungalien project.
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